09-26-2022 BPU RPT 09 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 26, 2022 SUBJECT: FIRST AMENDMENT TO LEASE AGREEMENT WITH DAVID L. HORTON, ESQ. AND ASSOCIATES MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 560 THREE-YEAR TERM FOR $163,346.40 IN REVENUE ISSUE: Consider recommending that the City Council approve a First Amendment to Lease Agreement to extend the lease for an additional three-year term between David L. Horton, Esq. and Associates and the City of Riverside for approximately 1,521 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 560. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve a First Amendment to the Lease Agreement with David L. Horton, Esq. and Associates to extend the Lease Agreement for an additional three-year term from October 1, 2022 to September 30, 2025; and 2. Authorize the City Manager, or designee, to execute the First Amendment, including making minor and non-substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is now the Landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six-story building, plus a basement level and a 490-parking stall garage situated on approximately 2.5 acres of land. On January 26, 2016, the City Council approved an Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc. dba Newmark Knight Frank (NKF) for a five-year term to provide broker leasing services for the Property. On January 5, 2021, the City Council approved a First Amendment to Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc., dba Newmark Knight Frank (NKF) which extended the Agreement through December 31, 2025. RPU staff has been coordinating the leasing process for the Property with the Real Property Services Division of the Community & Economic Development Department and NKF as the broker for the Property.